Two of the most common types of companies that are established by foreign entrepreneurs in Switzerland are AG (Aktiengesellschaft) and GmbH (Gesellschaft mit beschränkter Haftung). Both these types of company identities have their differences and can bring a range of advantages.
In this article, we will discuss the difference between AG and GmbH companies.
AG Companies In Switzerland
AG companies are perfect for larger corporations and must be made up of the following main governing bodies: general shareholders, a board of directors and company auditors. If you want to set up an AG company, the minimum share capital must be 100,000 CHF or more and a 50% deposit must be paid during company registration. Also, the shareholders in the AG company may remain disclosed to the public and to the bank when filing annual tax return reports.
GmbH Companies In Switzerland
If you are a smaller company and are willing to expand activity in Switzerland, then a GmbH company is best for you. However, for GmbH companies, its’ slightly more different compared to AG companies when it comes to structure as the company partners will make decisions through general meetings and it will be the management that will run the company. Therefore, the company’s main bodies also only have to consist of at least one shareholder and one company director. To set up a GmbH company you also need a smaller minimum share than an AG of at least 20,000 CHF and no deposit is required upon registration.
Similarities Of AG & GmbH Companies In Switzerland
One of the common similarities between AG and GmbH companies is that they both have limited liability and have the option to transfer shares to different beneficiaries. Both company types must also be made up of at least one shareholder, one director, one local director and have a registered office in Switzerland. The directors must also be registered in the Public Registry Of Directors.
Both AG and GmbH companies are required by statutory regulations to comply with payment of corporate taxes which can vary between 8% and 15% and they both must file annual tax reports but this is not needed for company accounts. Lastly, annual audits are also needed for both AG and GmbH companies if you have at least one of these: turnover of 40 million CHF or more, assets of 20 million CHF or more or at least 250 employees.
Do You Need More Advice On Swiss Company Incorporation?
At CO-Handelszentrum GmbH, we offer a range of company formation and administration services to our clients. If you would like more information on both AG and GmbH companies, you can click here to view our Zug business guide. Alternatively, you can contact our team here to find out more about GmbH companies.